9 



at the same time \Vhrn rhc material in the large 

 bin is exhausted, an order should at once be put 

 in for sufficient material to fill both bins. If ma- 

 terial is ordered on the basis of an established 

 mum, the shop can be drawing from the small 

 r urul there should still be 



a safe margin left by the time the new order is 

 received and goes into stock. 



Quantity of M at e rial to Bf I'utt hasfd. The 

 second question, namely, the quantity to be pur- 

 chase,!, is Lir^tK u matter of policy and is to a 

 large extent governed by the same conditions as 

 the safe minimum to keep in stock. If the mate- 

 rial is easily obtained from a reliable source close 

 rately small quantities can be or- 

 dered Theoretically, the ideal would be for ma- 

 terial to come into the plant, go at once into 

 process, be finished, and shipped out; but this sel- 

 dom works out in practice. I he nc\t tu-st thing 



to order the smallest quantity necessary. A 

 month's supply mitfht Jo; in other cases. 

 months' or more, these being based upon the nor- 

 mal demand. In general, large quantities can be 

 purchased cheaper and to greater advantage. On 

 the other hand, to do so ties up more money so 

 that, at best, it is a compromise in which the needs 

 of the shop and advantages in purchasing should 

 both be considered. The advantage of purchasing 

 large quantities without the necessity of carrying 

 a large stock can sometimes be effected by placing 

 an order for a large quantity, with deliveries speci- 

 fied on certain successive dates. This keeps the 



